MNI BRIEF: Japan Jan CGPI Rises 0.2% Y/Y Vs. Dec +0.2%
The data illustrated the pass-through of cost increases in the downstream continued but the pace slowed, indicating that the y/y rise of the consumer price index will slow in the coming months as the BOJ expected.
Prices for beverages and foods rose 4.4% y/y in January, slightly slowing from December’s 4.5%.
A BOJ official said the pass-through of high labour costs to prices was observed but its impact was small.
January's import prices fell 0.2% y/y, slowing from December’s 4.9% drop, for the 10th straight fall, showing downward pressure from import prices continued to weaken.
MNI reported last week BOJ officials believe recent weak domestic-demand data will not impede the Board’s desire to remove negative interest rates over the coming months. (See MNI POLICY: BOJ Sees Intact Recovery, Policy Change Ahead)